BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the of San Diego Gas and Electric Company for a Certificate of Public Convenience and Necessity Authorizing the Construction of the for the Otay Mesa Power Purchase Agreement Transmission Project Application 04-03-008 OPENING COMMENTS OF THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION ON THE PROPOSED DECISION OF ALJ BROWN In accordance with Rule 77.2 of the Commission s Rules of Practice and Procedure, the California Independent System Operator Corporation ( CAISO ) submits the following comments on the Proposed Decision ( PD ) of Administrative Law Judge ( ALJ ) Brown. The CAISO supports the PD s approval of San Diego Gas & Electric Company s ( SDG&E ) application for a Certificate of Public Convenience and Necessity ( CPCN ) for the construction of the Otay Mesa Power Plant Transmission Project ( Transmission Project ). The PD found that the Transmission Project is the appropriate upgrade to realize the full potential of Otay Mesa for grid reliability and [Reliability Must Run ( RMR )] savings, to reduce congestion and to provide for expansion capability for load growth. (PD at 61.) This finding is consistent with the conclusions reached by the CAISO. Equally important and as noted by the PD, the CAISO performed a thorough analysis of alternative electrical solutions prior to selecting the Transmission Project as the superior upgrade to achieving the benefits of the Otay Mesa Generating Plant. Accordingly, given the PD s acknowledgment that the Commission determined in Decision 04-06-011 that the construction of the Otay Mesa 1

MANATT, PHELPS & PHILLIPS, LLP DAVID L. HUARD 11355 WEST OLYMPIC BOULEVARD LOS ANGELES, CA 90064 PUCservice@manatt.com MANATT, PHLEPS & PHILLIPS, LLP RANDALL W. KEEN 11355 WEST OLYMPICS BLVD. LOS ANGELES, CA 90064 puc_service@manatt.com CENTRE CITY DEVELOPMENT CORPORATION ALEXANDRA ELIAS 225 BROADWAY, SUITE 1100 SAN DIEGO, CA 92101 elias@ccdc.com SAN DIEGO GAS & ELECTRIC COMPANY E. GREGORY BARNES 101 ASH STREET SAN DIEGO, CA 92101 gbarnes@sempra.com PORT OF SAN DIEGO WILLIAM J. BRIGGS 3165 PACIFIC HIGHWAY SAN DIEGO, CA 92101-1128 wbriggs@portofsandiego.org SAN DIEGO GAS & ELECTRIC CHRIS BING 8330 CENTURY PARK COURT, CP02-170 SAN DIEGO, CA 92123 cbing@semprautilities.com LUCE, FORWARD, HAMILTON & SCRIPPS, LLP JOHN W. LESLIE 11988 EL CAMINO REAL, SUITE 200 SAN DIEGO, CA 92130 jleslie@luce.com CALIFORNIA PUBLIC UTILITIES COMMISSION NOEL A. OBIORA SAN FRANCISCO, CA 94102 nao@cpuc.ca.gov ALCANTAR & KAHL, LLP EVELYN KAHL 120 MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO, CA 94104 ek@a-klaw.com GOODIN, MACBRIDE, SQUERI, RITCHIE & DAY BRIAN T. CRAGG 505 SANSOME STREET, SUITE 900 SAN FRANCISCO, CA 94111 bcragg@gmssr.com DUKE ENERGY AMERICAS JANE A. PEARSON 5400 WESTHEIMER COURT HOUSTON, TX 77056 japearson@duke-energy.com DAVIS WRIGHT TREMAINE LLP JEFFREY P. GRAY ONE EMBARCADERO CENTER, SUITE 600 SAN FRANCISCO, CA 94111 jeffgray@dwt.com HANNA AND MORTON LLP NORMAN A. PEDERSEN 444 SOUTH FLOWER STREET, SUITE 1500 LOS ANGELES, CA 90071-2916 npedersen@hanmor.com CALIFORNIA INDEPENDENT SYSTEM OPERATOR GRANT A. ROSENBLUM 151 BLUE RAVINE ROAD FOLSOM, CA 95630 grosenblum@caiso.com GOODRICH ASG MIKE HARRINGTON MAIL ZONE 54/A - 850 LAGOON DRIVE CHULA VISTA, CA 91910 mike.harrington@goodrich.com ALBERT YORK HUANG 401 MILE OF CARS WAY, STE. 310 NATIONAL CITY, CA 91950 DUDEK & ASSOCIATES, INC. JOHN PORTEOUS 605 THIRD STREET SAN DIEGO, CA 92024 jporteous@dudek.com EUCALYPTUS HILLS LANDOWNERS ASSOC. INC. PO BOX 803 LAKESIDE, CA 92040 EHLA@flash.net ARLEN & ELAINE WATT 10881 OAK CREEK DRIVE LAKESIDE, CA 92040 SAN DIEGO GAS & ELECTRIC COMPANY THEODORE E. ROBERTS 101 ASH STREET, HQ 13D SAN DIEGO, CA 92101-3017 troberts@sempra.com SAN DIEGO CONVENTION CENTER CORPORATION FRED SAINZ 111 W. HARBOR DRIVE SAN DIEGO, CA 92101-7899 SAN DIEGO GAS & ELECTRIC CENTRAL FILES 8330 CENTURY PARK COURT, CP31-E SAN DIEGO, CA 92123-1530 centralfiles@semprautilities.com SOUTHERN CALIFORNIA EDISON COMPANY BRUCE FOSTER 601 VAN NESS AVENUE, STE. 2040 SAN FRANCISCO, CA 94102 bruce.foster@sce.com CALIFORNIA ENERGY MARKETS 517-B POTRERO AVE. SAN FRANCISCO, CA 94110 cem@newsdata.com PACIFIC GAS AND ELECTRIC COMPANY LAW DEPARTMENT FILE ROOM PO BOX 7442 SAN FRANCISCO, CA 94120-7442 cpuccases@pge.com CALPINE CORPORATION MITCH WEINBERG 4160 DUBLIN BLVD. DUBLIN, CA 94568 mitchw@calpine.com CALPINE CORPORATION RICHARD L. THOMAS 4160 DUBLIN BLVD. DUBLIN, CA 94568 rickt@calpine.com CALPINE CORPORATION STEVEN S. SCHLEIMER 4160 DUBLIN BLVD. DUBLIN, CA 94568 sschleimer@calpine.com BINGHAM MC CUTCHEN GEOFFREY ROBINSON 1333 NORTH CALIFORNIA BLVD. WALNUT CREEK, CA 94596 geoffrey.robinson@bingham.com DUKE ENERGY ANDREW TRUMP PO BOX 11140 OAKLAND, CA 94611 altrump@duke-energy.com

MRW & ASSOCIATES, INC. 1999 HARRISON STREET, SUITE 1440 OAKLAND, CA 94612 mrw@mrwassoc.com CALIFORNIA ISO 150 BLUE RAVINE ROAD FOLSOM, CA 95630 e-recipient@caiso.com DUKE ENERGY NORTH AMERICA MELANIE GILLETTE 980 NINTH STREET, SUITE 1420 SACRAMENTO, CA 95814 mlgillette@duke-energy.com VIEWPOINT WEST CHRISTINE KELLER 23475 GOVERNMENT SPRINGS ROAD MONTROSE, CO 81401 vpwest@montrose.net Carol A Brown ROOM 5103 cab@cpuc.ca.gov SCHEVERMAN CONSULTING PAUL SCHEVERMAN 3915 RAWHIDE ROAD ROCKLIN, CA 95677 pgs@ieee.org Maxine Harrison 320 WEST 4TH STREET SUITE 500 LOS ANGELES, CA 90013 omh@cpuc.ca.gov Julie A Fitch ROOM 5203 jf2@cpuc.ca.gov CALIFORNIA ENERGY COMMISSION CLARE LAUFENBERG 1516 9TH ST., MS 46 SACRAMENTO, CA 95814 claufenb@energy.state.ca.us Billie C Blanchard AREA 4-A bcb@cpuc.ca.gov Scott Logan ROOM 4209 sjl@cpuc.ca.gov CALIFORNIA ENERGY COMMISSION KAREN GRIFFIN 1516 9TH STREET, MS 39 SACRAMENTO, CA 95814 kgriffin@energy.state.ca.us